SEC Reprimands Bright Smart Securities International, Fines It HK$2.8 Million

The Securities and Futures Commission reprimanded Bright Smart Securities International and fined it HK$2.8 million for failing to implement adequate and effective internal controls to monitor and detect suspected wash trades conducted by its clients, according to Ming Pao. The regulator said Bright Smart relied mainly on manually operated, reactive surveillance, lacked effective automated pre-trade measures, and had deficiencies in system design and implementation, indicating clear weaknesses in its internal control and risk management framework.